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Weather challenge for Scottish & Newcastle

Britain's Scottish & Newcastle has become the latest company to be affected by the bad weather in northern Europe this summer.

The brewer said hitting its trading targets for the year would be very challenging, blaming underperformance in its  western European markets.

S&N, which is the biggest brewer in Britain, France and Russia, posted a less than expected 5.5% rise in its first-half pre-tax profits to £191m on 7.8% higher revenue of £2.1 billion.

The firm said bad weather in Britain, France and a strike at one of its French breweries had outweighed strong growth from the Russian beer market.

S&N, which owns Strongbow cider and Bulmers in the UK, is a rival of C&C's Magners brand in Britain. It said Strongbow revenues were up 16.4% and that the brand gained market share. The company also said it was testing the potential for cider in European markets, a move which C&C has also announced.